The job market for recent college graduates is the worst it’s been in decades—outside of the 2008 financial crisis and the pandemic.
According to new data from the Federal Reserve, the unemployment rate for college graduates ages 22 to 27 hit 5.8% in early 2025, compared to 4.2% for the general population. A separate analysis from Fortune found the rate for recent grads has hovered near 6.6% over the past 12 months—well above average and a clear signal that young adults are being hit harder than most.
“Young people are bearing the brunt of a lot of economic uncertainty,” Brad Hersbein, senior economist at the Upjohn Institute, a labor-focused think tank, said. “The people that you often are most hesitant in hiring when economic conditions are uncertain are entry-level positions.”
Experts say there are several factors to blame, including a cooling economy, widespread hiring freezes and an increased reliance on AI-powered screening tools that filter out applications before a human ever sees them. As a result, even qualified candidates are getting ghosted.
At the same time, many traditional entry-level roles have disappeared entirely or are now being filled by more experienced workers who’ve been laid off from higher-paying jobs and are competing for the same limited opportunities.
In other words, it’s a logjam at the bottom—and recent grads are bearing the brunt of it.
